New Volusia chair Davis had 2001 fraud arrest; charge later dropped

Charges later dropped; wife went to prison

Newly elected Volusia County Chair Jason Davis celebrates at the Southeast Volusia Republican Party Headquarters in New Smyrna Beach on Nov. 7.

News-Journal / David Massey

ANDREW GANTSTAFF WRITER

Published: Thursday, December 6, 2012 at 5:30 a.m.

Last Modified: Wednesday, December 5, 2012 at 6:49 p.m.

Eleven years ago, before he ran for any public office, Volusia County Chair-elect Jason Davis was arrested — but never prosecuted — on organized fraud charges that put his wife in prison.

That felony arrest was news to several government officials and others close to the County Council on Wednesday.

Davis, who stressed all the charges against him were eventually dropped, called the case "a moot point." He said he acknowledged it in his last campaign, a 2008 race for U.S. House.

"Is it an important milestone in a man's life? Maybe so," Davis said Wednesday. "But did it make me a criminal? No. Do I plan on being a criminal? No."

Davis' wife at the time, Kelly, was his co-defendant in the case and became its central figure. The criminal charges amounted to a $54,000 embezzlement scheme at Mepco, a small Sanford electrical contractor where Kelly worked as a bookkeeper.

Both Jason and Kelly Davis were arrested in 2001 after Mepco's owner noticed several checks and stubs were missing.

Police records show most of the money (more than $44,000) went into Davis' personal and business accounts. Of that, $22,833 went into his personal account between July and November 1999, and $21,653 into his business account in November and December. A police report listed each check by number and amount — ranging from about $300 to almost $10,000 — and specified where each one was deposited.

Kelly Davis ultimately pleaded no contest to organized fraud and was sentenced to 51/2 years in prison and 20 years of probation. She served a little less than 4 years behind bars.

State Attorney's Office records show Jason Davis told prosecutors he didn't know the money was stolen. Prosecutors decided not to prosecute him in February 2004, about a year after his wife entered her plea.

"It did not define me as a human being, and it didn't define me as a man," Davis said. "I was in the wrong place at the wrong time and involved with the wrong woman. And I mean it was as simple as that."

Davis told investigators his wife "told him the checks were bonus checks from her employment," according to a State Attorney's Office file explaining the decision not to pursue his charges. "The reason she had the checks made out to him or his business was so they could be deposited into his account because she did not have a bank account."

Mepco's owner noticed the checks missing in 2000 and confronted Kelly, according to a Sanford Police report. Kelly "got nervous and left the office and never returned." Eventually, after several attempts at contacting her, Mepco received a fax from Jason Davis "stating that he has consulted with his lawyer and advises that they are to cease and desist all contact with him or any part of his family," according to the police report.

After getting that fax, Mepco called the police.

Four months into the case, Jason Davis' attorney filed a motion — later granted — to separate his case from his wife's. (The couple eventually split up for good; their divorce became final in June 2004.)

The motion acknowledged "that Jason Davis is apparently thought to have used some of these funds which were commingled with his personal and business funds to pay expenses." But it also argued "it is unclear at this time as to how the state of Florida intends to show knowledge on the part of Jason Davis as to whether or not the origin of the funds was illegally diverted from Mepco Inc."

The court filing said "the only connection between Jason Davis and Mepco Inc. was that he installed a computer system for Mepco Inc. for which he was paid."

Kelly Davis "almost put me out of business," Mepco owner Greg Bonner told the court at her sentencing. He said he had to take out a home equity loan to pay his employees.

Davis didn't mention the case throughout his campaign for county chair, in which he defeated two more prominent political figures: former County Councilman Carl Persis and Daytona Beach attorney Ted Doran.

"Nobody brought it up, and I didn't really think about it, because all the charges were dropped," Davis said. "I had nothing to do with what happened.

"When you put your wife in charge of taking care of the house, and when you come home, the power's on, the water's on, the cable's on and everything is fine — am I going to question it? No," he said. "Because I thought she was taking care of the bills. What she did with that bank account was absolutely all on her."

Davis also said he told a News-Journal reporter about the arrest during his 2008 campaign for Florida's District 24 seat in the U.S. House. That wasn't reflected in a search of News-Journal archives.

People like Volusia Tax Reform Executive Director Margie Patchett and Volusia Republican Executive Committee Vice Chairman Tony Ledbetter, both of whom supported Davis' campaign this year, said they were unaware of his arrest, and it never came up during the race.

"Maybe the opponents didn't do the research," Patchett said. "I worked for attorneys for 27 or 28 years, and one of the good things about our country is we're innocent until proven guilty. If the state attorney dropped the charges against him, it would be my understanding that they would have good cause to drop the charges against him."

Davis spent less than $10,000 running for county chair, compared to the six-figure campaign expenditures of each of his opponents.

Davis' term doesn't officially begin until January, but the county chair seat was left vacant by Frank Bruno, who resigned to run for state Senate and lost. Davis told The News-Journal on Wednesday afternoon that "a third party" told him "the paperwork is on the way to Volusia County" from the governor's office approving his early appointment to the council. But later in the day, Davis said he had gotten word there would be no early appointment and he would be sworn in as scheduled in January.

For many in Volusia County, Davis' general-election victory over Persis was a shock. Davis ran on a platform of cutting taxes and reducing government waste but had no government experience. He received a Bronze Star for bravery in the Gulf War, and has provided documentation of that and his military service.

After his military career, his jobs varied. He has said he managed an auto parts store, ran his own computer business (CIB), worked as an electrician, became a contractor for Bright House Networks, went to Daytona State College to study music education and became the "Voice of the Boston Pops" on an AM radio station in New Smyrna Beach.

In a previous interview with The News-Journal, Davis said his computer business "didn't work out," but didn't indicate he was involved in a criminal case. The newspaper did not initially run a full Florida Department of Law Enforcement background check on him, but that changed this week. The paper also ran checks on other newly elected County Council members.

The Mepco charges weren't the only ones against Kelly Davis. She also was convicted of organized fraud from another employer — theft she committed while out on bail in the Mepco case, according to court records. In that case, she stole about $40,000.

After her sentencing in Mepco, Kelly Davis wrote letters to a judge complaining that her punishment was too harsh. "My attorney stated to the judge that my husband/co-defendant was the benefactor of all of this money and also detailed his involvement and why I did what I did," she wrote.

"I admit my part in this crime was wrong. The other people involved, though, are getting off scot-free," she added.

The court file shows Kelly Davis offered prosecutors testimony against her husband. She hired a private investigator and wanted the stolen checks forensically tested to prove she didn't write them. She even offered some testimony in two pending murder cases in exchange for a lighter sentence, but prosecutors felt they had enough information in those cases already.

Kelly Davis' parents planned to pay at least $50,000 in restitution, according to a court transcript. In later letters to the court, Kelly Davis appeared to accept responsibility for the thefts and apologize to her family.

Jason Davis repeated this several times in an interview Wednesday: "All the charges were dropped." He added: "It's not who I am; it's never been who I am," and said voters shouldn't be concerned about him as chairman.

"In the county, there are several checks and balances — no one person has access to the checks, no one person carries a bag of money around," Davis said. "...They found no evidence; they really had no probable cause. They just arrested to cover their bases. I got an apology, and my attorney said, 'You are free to go for the rest of your life.' And I looked at him and said, 'I hope I never have to see you again.' "

<p>Eleven years ago, before he ran for any public office, Volusia County Chair-elect Jason Davis was arrested &mdash; but never prosecuted &mdash; on organized fraud charges that put his wife in prison. </p><p>That felony arrest was news to several government officials and others close to the County Council on Wednesday. </p><p>Davis, who stressed all the charges against him were eventually dropped, called the case "a moot point." He said he acknowledged it in his last campaign, a 2008 race for U.S. House. </p><p>"Is it an important milestone in a man's life? Maybe so," Davis said Wednesday. "But did it make me a criminal? No. Do I plan on being a criminal? No." </p><p>Davis' wife at the time, Kelly, was his co-defendant in the case and became its central figure. The criminal charges amounted to a $54,000 embezzlement scheme at Mepco, a small Sanford electrical contractor where Kelly worked as a bookkeeper. </p><p>Over five months in 1999, prosecutors said, Kelly Davis deposited about 20 stolen Mepco checks &mdash; writing them to herself, Jason Davis or his computer business, CIB Enterprises. </p><p>Both Jason and Kelly Davis were arrested in 2001 after Mepco's owner noticed several checks and stubs were missing. </p><p>Police records show most of the money (more than $44,000) went into Davis' personal and business accounts. Of that, $22,833 went into his personal account between July and November 1999, and $21,653 into his business account in November and December. A police report listed each check by number and amount &mdash; ranging from about $300 to almost $10,000 &mdash; and specified where each one was deposited. </p><p>Kelly Davis ultimately pleaded no contest to organized fraud and was sentenced to 51/2 years in prison and 20 years of probation. She served a little less than 4 years behind bars. </p><p>State Attorney's Office records show Jason Davis told prosecutors he didn't know the money was stolen. Prosecutors decided not to prosecute him in February 2004, about a year after his wife entered her plea. </p><p>"It did not define me as a human being, and it didn't define me as a man," Davis said. "I was in the wrong place at the wrong time and involved with the wrong woman. And I mean it was as simple as that." </p><p>Davis told investigators his wife "told him the checks were bonus checks from her employment," according to a State Attorney's Office file explaining the decision not to pursue his charges. "The reason she had the checks made out to him or his business was so they could be deposited into his account because she did not have a bank account." </p><p>Mepco's owner noticed the checks missing in 2000 and confronted Kelly, according to a Sanford Police report. Kelly "got nervous and left the office and never returned." Eventually, after several attempts at contacting her, Mepco received a fax from Jason Davis "stating that he has consulted with his lawyer and advises that they are to cease and desist all contact with him or any part of his family," according to the police report. </p><p>After getting that fax, Mepco called the police. </p><p>Four months into the case, Jason Davis' attorney filed a motion &mdash; later granted &mdash; to separate his case from his wife's. (The couple eventually split up for good; their divorce became final in June 2004.) </p><p>The motion acknowledged "that Jason Davis is apparently thought to have used some of these funds which were commingled with his personal and business funds to pay expenses." But it also argued "it is unclear at this time as to how the state of Florida intends to show knowledge on the part of Jason Davis as to whether or not the origin of the funds was illegally diverted from Mepco Inc." </p><p>The court filing said "the only connection between Jason Davis and Mepco Inc. was that he installed a computer system for Mepco Inc. for which he was paid." </p><p>Kelly Davis "almost put me out of business," Mepco owner Greg Bonner told the court at her sentencing. He said he had to take out a home equity loan to pay his employees. </p><p>Davis didn't mention the case throughout his campaign for county chair, in which he defeated two more prominent political figures: former County Councilman Carl Persis and Daytona Beach attorney Ted Doran. </p><p>"Nobody brought it up, and I didn't really think about it, because all the charges were dropped," Davis said. "I had nothing to do with what happened. </p><p>"When you put your wife in charge of taking care of the house, and when you come home, the power's on, the water's on, the cable's on and everything is fine &mdash; am I going to question it? No," he said. "Because I thought she was taking care of the bills. What she did with that bank account was absolutely all on her." </p><p>Davis also said he told a News-Journal reporter about the arrest during his 2008 campaign for Florida's District 24 seat in the U.S. House. That wasn't reflected in a search of News-Journal archives. </p><p>People like Volusia Tax Reform Executive Director Margie Patchett and Volusia Republican Executive Committee Vice Chairman Tony Ledbetter, both of whom supported Davis' campaign this year, said they were unaware of his arrest, and it never came up during the race. </p><p>"Maybe the opponents didn't do the research," Patchett said. "I worked for attorneys for 27 or 28 years, and one of the good things about our country is we're innocent until proven guilty. If the state attorney dropped the charges against him, it would be my understanding that they would have good cause to drop the charges against him." </p><p>Davis spent less than $10,000 running for county chair, compared to the six-figure campaign expenditures of each of his opponents. </p><p>Davis' term doesn't officially begin until January, but the county chair seat was left vacant by Frank Bruno, who resigned to run for state Senate and lost. Davis told The News-Journal on Wednesday afternoon that "a third party" told him "the paperwork is on the way to Volusia County" from the governor's office approving his early appointment to the council. But later in the day, Davis said he had gotten word there would be no early appointment and he would be sworn in as scheduled in January. </p><p>For many in Volusia County, Davis' general-election victory over Persis was a shock. Davis ran on a platform of cutting taxes and reducing government waste but had no government experience. He received a Bronze Star for bravery in the Gulf War, and has provided documentation of that and his military service. </p><p>After his military career, his jobs varied. He has said he managed an auto parts store, ran his own computer business (CIB), worked as an electrician, became a contractor for Bright House Networks, went to Daytona State College to study music education and became the "Voice of the Boston Pops" on an AM radio station in New Smyrna Beach. </p><p>In a previous interview with The News-Journal, Davis said his computer business "didn't work out," but didn't indicate he was involved in a criminal case. The newspaper did not initially run a full Florida Department of Law Enforcement background check on him, but that changed this week. The paper also ran checks on other newly elected County Council members. </p><p>The Mepco charges weren't the only ones against Kelly Davis. She also was convicted of organized fraud from another employer &mdash; theft she committed while out on bail in the Mepco case, according to court records. In that case, she stole about $40,000. </p><p>After her sentencing in Mepco, Kelly Davis wrote letters to a judge complaining that her punishment was too harsh. "My attorney stated to the judge that my husband/co-defendant was the benefactor of all of this money and also detailed his involvement and why I did what I did," she wrote. </p><p>"I admit my part in this crime was wrong. The other people involved, though, are getting off scot-free," she added. </p><p>The court file shows Kelly Davis offered prosecutors testimony against her husband. She hired a private investigator and wanted the stolen checks forensically tested to prove she didn't write them. She even offered some testimony in two pending murder cases in exchange for a lighter sentence, but prosecutors felt they had enough information in those cases already. </p><p>Kelly Davis' parents planned to pay at least $50,000 in restitution, according to a court transcript. In later letters to the court, Kelly Davis appeared to accept responsibility for the thefts and apologize to her family. </p><p>Jason Davis repeated this several times in an interview Wednesday: "All the charges were dropped." He added: "It's not who I am; it's never been who I am," and said voters shouldn't be concerned about him as chairman. </p><p>"In the county, there are several checks and balances &mdash; no one person has access to the checks, no one person carries a bag of money around," Davis said. "...They found no evidence; they really had no probable cause. They just arrested to cover their bases. I got an apology, and my attorney said, 'You are free to go for the rest of your life.' And I looked at him and said, 'I hope I never have to see you again.' "</p>